lean wastes

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    Zulfa Management Consulting

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    Lean is NOT ...Clearing confusions

    2

    It is not a magic wand or silver bullet to fix everything

    It is not rocket science.It is simple

    It is not a system to reduce headcount

    It is not a diet program

    It is not a solution to personnel or performance issues

    It is not only for factories.It works everywhere

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    What is Lean?Basic definitions

    3

    Lean is simply is:

    A systematic approach to continuously eliminate waste within a process

    It may be referred to as:Continuous ImprovementKaizenOperational Excellence

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    What is LeanThe Five Principles

    Produce - only what the customer wants, - only in the quantities they want, - only when they want it, - only by doing the tasks that add value.

    Identify Value as

    Percieved by Cusotmers

    Map the Value Stream

    Esatblish Customer

    PullSystem

    Seek Perfection Through Kaizen

    Create Flow By Eleminating

    Waste

    JIT

    Just In

    Time

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    History of LeanOver 60 Years of Continuous Improvement

    5

    1911

    Frederick Taylor developed scientific

    management principles

    1903

    Henry Ford manufactured the first

    commercial fuel engine car

    Model A

    1908

    Ford established its first assembly line

    Model T

    Toyota was founded by Kiichiro Toyoda

    and his son

    19331950

    Edward Deming made the PDCA

    improvement cycle popular

    1946

    Toyota suffered from post war

    depression and the great strike

    1913

    Ford built the first moving assembly

    line

    1970

    Taiichi Ohno finished buidling the Toyota Production System (TPS) after WWII

    1984

    The rise of Total Quality Management

    (TQM) Theroy

    1990

    Jack Welch created Six Sigma and the Center of Exellence at GE

    2000

    Continouos Improvement, LSS and Operational Excellence Strategies are

    adopted by many organizations in different fields

    Motorola initiated Six

    Sigma Quality

    1980

    1939 to 1945

    World War II

  • Formula 1 Pit-Stop Evolution

    Movie Time

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    Why Focus on Process?Why not something else?

    8

    Inputs Outputs

    80%

    Process

    Material Information Customers

    Products Services

    Material Information Customers

    Resources (people, facilities, equipment)

    Steps and decisions

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    Process WasteIs the step value added?

    9

    Value-Added (VA) Step

    Non-Value Added (NVA) Step

    (Waste)

    Before

    After

    Lead time = 7 Hours

    Lead Time = 3 Hours

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    Value Added vs WasteWaste is Everywhere

    10

    30%

    60%

    10%Value

    Added

    Non-Value Added (Waste)

    Non-Value Added but Necessary

    Is the customer willing to pay for this specific step?1

    Does the step transform the product or service?2

    Was the step done first time correctly?3

    Ask these 3 questions to know if the step is value added:

    If one if the answers is NO, then the step is waste.

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    The 8 Types of Waste

    Muda (Surface wastes)

    Defects1

    Over Production2

    Waiting3

    Non-Utilized Talent4

    Extra Processing8

    Motion7

    Inventory6

    Transportation5

    Photo Credit Tim and Selena Middleton

    The first step is seeing the waste!

    11

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    Overproduction

    Doing more than required

    12

    Producing more products or services than the customer needs or downstream process can use right away.

    Examples:Oversupply Wasted raw materialToo many meetingsNot required workA report that no one readsSending unnecessary e-mails

    Common Causes:Unclear customer demandPush production systemThe production line cannot be stoppedLong and complicated changeoversUnbalanced work flowPoor worker distributionBatching

    Every years billions of dollars are lost

    because of excess medicines prescribed

    by doctors.

    Photo Credit Hussain Al-Ahmed

    12

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    InventoryStorage

    13

    Unnecessary storage of information and material Physical InventoriesQueues of customersDigital Information in database

    Examples:Too much stock in the warehouseHigh backlog or WIP (Work In Process)Customers waiting to be servedSystem transactions waiting for actionsUnread and undeleted e-mailsOld and outdated documentsDuplicate files

    Common Causes:OverproductionBatchingLate inventory updatesMaterial replenishment system problemsDisconnected storage locations

    How much is needed?

    Photo Credit Wikipedia

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    InventoryWhy is it a problem?

    14

    Inventory hides problems

    High Inventory

    Reducing Inventory

    Source: adapted (Slack etl, 2009)

    Phyical invnetory ties up working capital Time-Cost to the waiting customer Cost of system setup access, update and

    miantenance

    Cost

    Items requires storage space Customers require waiting area IT system requires memory, security and

    special environment

    Space

    Physical items may deteroriate over time or obselete

    Customers may get upset if they wait for too long

    Data may get corroupted or lost

    Quality

    Physical inventories may hide problems Waiting customers may put undue pressure on

    the staff causing quality issues Databse needs constant management, acess

    control and maintenance

    Operations

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    TransportationMoving things

    15

    Moving products, equipment, material, information, or people from one place to another.

    Photo Credit Garry Knight

    Will he add value by moving the books?

    15

    Examples:Shipping productsMobilizing equipment and peopleMoving material in the shopMoving spare partsForklifts and cranesMoving marketing material for tradeshows

    Common Causes:Poor facility layout (distance and sequence)Poor planning and communicationNot leveraging technologyOverproduction and high inventoryImproper storage solutions

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    MotionSearching

    16

    Unnecessary movement of people or machines that takes time and uses energy and may create health and safety risks.

    Examples:Searching for hand tools or materialGoing to the supervisor officeExcessive reaching or bendingWalking to find people or informationTrips to copier machine or printerExtra computer clicksLooking for specific files in computerSearching in the web

    Common Causes:Facility layoutShared hand toolsWorkstation designPoor workplace organization and housekeepingManual processes and not leveraging technologyIneffective information sharing Are they working?

    Photo Credit Hussain Al-Ahmed16

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    DefectsRework /

    Correction/ Errors

    17

    The efforts involved inspecting for and fixing errors, mistakes.

    Examples:Failed outgoing equipment inspectionQuality problems and failuresCorrections and reworkScrap and junkReturned documents and invoicesRejected paperworkIncorrect approval chainUnsaved computer work

    Common CausesLack of standard workTraining problemsUnclear or complex processVoice of the customer is absentMissing or incomplete information

    How much will it cost to fix this!

    17

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    WaitingDelays

    18

    Idle time created when material, information, people, or equipment is not ready

    Examples:Operator waiting for machines to finish cyclingWaiting for ForkliftProducts waiting for people People waiting for materialPeople waiting for other peopleWaiting for information, decisions or approvalsWaiting for customer specificationsWaiting for supplier confirmationSlow or broken computers or internet

    Common CausesUnbalanced work flowLack of workersSystem down timeMachine breakdowns Keep Calm and Just

    Wait!

    Photo Credit Hussain Al-Ahmed

    18

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    Extra Processing

    Overdoing

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